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V2463-17 3 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación comercial

Commercial brokerage services provided to companies not established in Spain are not subject to VAT

A company based in the Canary Islands has requested a ruling regarding the taxation of its commercial brokerage, excursion sales, and retail services. The DGT has determined that these operations are not subject to VAT as they are not carried out within the territory to which the tax applies.

The question raised

Taxation of commercial brokerage operations, brokerage in the sale of excursions, and retail sales.

The DGT's ruling

Commercial brokerage services provided to a taxable person not established in Spain are not subject to VAT as they are not located within the territory to which the tax applies. In the brokerage of excursions, if the recipient is the organizing company established in the Canary Islands, there is also no VAT liability. Retail sales carried out in premises in the Canary Islands are considered to be outside the territory to which VAT applies.

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